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Naver Financial plans range of new products

Nov 01,2019
Naver Financial, a new affiliate of tech giant Naver, will release a suite of financial services including accounts, stock investment and insurance starting next year after the unit officially launches today.

Choi In-hyuk, chief operating officer of Naver who will head Naver Financial, said that the first product will be its own investment account - tentatively named Naver Account - to allow users to deposit funds and buy financial assets.

“Naver Account will be a central part of our business strategy to expand into different financial services,” he said in a conference call on Thursday to discuss Naver’s third-quarter earnings.

“Different products will arrive over the next two to three years.”

The move came after Naver announced its intention to spin off Naver Pay in July and transform it into a full-fledged financial company.

Its offerings will be focused on small-sized investments targeting investors wanting to commit just a small sum of money.

“We plan to launch securities and insurance policies that are made available with relatively small amounts of money,” Choi said.

Entering the second half of next year, the new affiliate will venture into the credit card business and recommend savings products offered by other banks.

Choi also indicated that Naver Financial is looking to use the Naver search engine and shopping platform to draw customers, mainly shoppers and merchants, for its services.

Mirae Asset Daewoo, in which Naver is the third largest shareholder, is set to invest 500 billion won ($413.6 million) into the new unit, according to multiple local media outlets.

Choi said that “The discussion is underway about size investment and shareholding structure,” adding that details will be announced through a public electronic disclosure upon the approval by Naver’s board.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]